Barcelona or bust, says Busquin

Date: 14/02/02

By Peter Chapman

EU LEADERS meeting in Barcelona next month must agree to boost spending on research and innovation to at least 3 of gross domestic product if Europe has any hope of becoming the 'most competitive knowledge-based economy by 2010', says the Union's research and development (R & D) chief.

The warning from Commissioner Philippe Busquin comes after US President George W. Bush hit the accelerator with an inflation-busting 12 increase in spending for civil and defence research projects - threatening to widen the gulf between the EU and its American rivals.

Busquin told European Voice that the EU will not be able to meet its 2010 target - pledged by prime ministers at the Lisbon summit two years ago - if the US outspends Europe by €76 billion a year on R&D.

'This is my new battle,' said Busquin. 'It is impossible to be the most competitive knowledge-based economy with this level of investment.'

The Belgian commissioner said research and industry ministers had already signalled their support for the goal at an informal meeting in Girona, Spain, on 1-2 February.

He added that UK and Dutch premiers Tony Blair and Wim Kok were preparing a pre-summit bid to bring R&D to the top of the agenda.

But Busquin admitted it might not be easy to get leaders of countries further down the spending charts to 'agree to the figure'.

He said the 3 target was the amount Europe must aim for if it hopes to top world spending levels by the magic 2010 date. The US and Japan currently spend 2.6 and 2.9 respectively.

To reach the 3 level, Busquin said the EU must match recent annual growth rates for spending in the US of 0.15 of GDP every year until 2010. But even if it does this, the US and Japanese may still lead the Union if they keep up their own annual growth rates in spending - meaning the EU must spend even more if it wants to be the best.

'Maybe the US will be higher in 2010,' he said. 'I think in two or three years the objective will have to be more ambitious. But 3 is the figure today.' He says much of this new investment must come from the private sector, which invests only 1.1 of GDP in research compared with 1.8 in the US and 2.1 in Japan.

But, he insists, the public sector must take responsibility for encouraging firms to spend more. 'The most important problem in Europe is to give a better macro-economic environment for research,' he argued.

For member states, this would require more tax breaks, state subsidies and bank guarantees and support for venture capital - areas in which the European Investment Bank and European Investment Fund have also taken a lead role.

Busquin said member states could learn from best practice within the EU - for example in Sweden and Finland, both of which are racing ahead of the rest of the continent.

The EU's tough state aid rules limit government subsidies, but Busquin said he was in talks with competition chief Mario Monti to ensure the Union continues to encourage pre-competitive research. He said he was confident Monti would do little to rock the boat when he unveils new general state aid guidelines this summer.

Busquin insisted that member states must also shake-off their reluctance to allow research in controversial areas - notably genetically modified organisms (GMOs).

He said Europe had scored an own goal by blocking R&D because of the so-called 'precautionary principle'.

'The blockage on research into GMOs is inappropriate,' he said. 'We cannot say we are going to be the most dynamic knowledge-based economy and at the same time take decisions against progress and research and innovation. It is not possible.

'Our values in Europe are more focused on social and environmental aspects. We must keep these values but the precautionary principle does not mean inaction.'

He said the Commission would present a new paper in Barcelona calling for greater investment in biotechnology - 'the most important economic fact for the 21st century' - including GMOs.

On the controversial area of stem cell research, the commissioner said 'there was no danger' that the EU would stop plans to invest money via the upcoming Sixth Framework R&D programme - even if individual countries, such as Ireland, ban research based on human fetuses.

'Maybe there are some differences between member states...but Europe must keep it.'

Specially cultivated human fetuses cannot be used in EU R&D. But Busquin said 'surplus' fetuses that would have been disposed of by hospitals or stem cells from other parts of a human body, such as umbilical cords, could be used.

He claimed this was 'sufficient' for current EU research seeking treatments for Parkinson's disease, Alzheimer's disease and some cancers.

In the meantime, Busquin predicted excellent returns if member states home in on promising areas such as 'nano-technology' [the development of tiny components and processors thinner than a hair] and continue to invest in information society projects, mirroring previous successes in mobile telecommunications.

These areas will form a key part of the Sixth Framework, set to be rubber-stamped by MEPs in May and by the Council of Ministers in June.

But Busquin said member states must cooperate on national projects in these and other areas to complement the relatively small EU budget for R&D - through his vision for a 'European research area'.

Philippe Busquin, European Commissioner for Research and Development, has called for EU leaders to agree at the Barcelona European Council in March 2002, to boost spending on research and innovation to at least 3% of gross domestic product if Europe has any hope of becoming the 'most competitive knowledge-based economy by 2010'.